Fine plunges 70 percent after being halted nearly 3 months

BarbaraC. Costanza

LOS ANGELES (CBS.MW) -- Shares of Fine Host Corp. (FINE)
fine
plunged 70 percent in the first day of trading since the company was halted in December.

Shares fell 7 1/8 to 3 on volume of 9.8 million shares, making it one of the ten most active Nasdaq stocks Tuesday.

On Feb. 6 the contract food service management company restated results to show losses for the periods from 1994 through the first three months of 1997. Including a charge for periods before 1994, the losses total $26.4 million. The company blamed improper recording of expenses and premature recording of profits. Tuesday's resumption of trading came after the Nasdaq rescinded an earlier decision to delist the stock. The Securities and Exchange Commission has also launched a probe of the company. In addition Fine is facing more than a dozen class action lawsuits.

The Dec. 12 stock halt came after the company fired Richard E. Kerley, its chairman and CEO, and Nelson A. Barber, senior vice president and treasurer.

Fine has retained management consultant Gerald P. Buccino to oversee the company's management and review its operation. "The company has worked quickly to identify and correct irregularities that occurred in the past," Buccino said in a statement.

The company went public in June 1996 and traded as high as 43 before the stock was halted in December.

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